Inflation slowed to a 6-month low in March, largely driven by lower energy costs, especially in gasoline prices. Despite the easing, the report likely only captures part of the first wave of global tariffs announcement. The inflationary pressure from tariffs and escalating trade war continues to threaten the economic growth and complicate the Fed’s path to its 2% target. Meanwhile, while housing inflation remains elevated, it continues to show signs of cooling – the year-over-year change in the shelter index remained below 5% for a seven straight month and posted its lowest annual gain since November 2021. …During the past twelve months, on a non-seasonally adjusted basis, the Consumer Price Index rose by 2.4% in March. …The “core” CPI increased by 2.8% over the past twelve months. A large portion of the “core” CPI is the housing shelter index, which increased 4.0% over the year.